The short answer is, don’t. I would invest in a fund such as VTSAX or solid, medium term stocks before investing in crypto.
Cryptocurrency offers high risk and is very difficult to predict or do any level of solid research on to make a confident decision.
That said, you obviously want to invest in crypto and hopefully understand what it actually is and how it moves, so let’s look at some ideas on how to safely (as safely as we possibly can) invest 10k in cryptocurrency.
Spread the risk
Rather than putting the entire 10k in one coin, consider spreading your risk by buying 2, 3 or 4 and build a portfolio. If you are already diversified and looking for your next crypto investment ideas then you’re all good.
If not, your risk diversification should be governed by how much you can afford to lose. If losing $10k would wipe you out completely, you really should consider spreading the risk. In fact, if $10k would clean you out, you probably should invest less money or think about saving until you have money you can afford to lose. It’s old and classic advice but, with crypto especially, you should only be investing money you can afford to lose.
Where to invest the $10k
Without beating around the bush leaving you in suspense, here are the cryptocurrencies that are interesting me at the moment.
It’s also worth noting that my plan here would be for the medium long term capital gains. I’m not interested in day trading or short term market movements. The $10,000 I would be investing would be viewed as high risk and rather than the usual 20% – 30% target, I would be looking for triple digits. I may also ignore stop losses but I’d keep a close eye on performance.
- Binance BUSD
- Etherum ETH
- Fantom FTM
- Polygon MATIC
- Ardor ARDR